A firm’s main goal is to add firm value. There are many ways to do this: increase sales, advertise, change management, and, possibly, doing good for the environment, employees, and others. The latter approach is often called corporate social responsibility. This paper tests to see if corporate social responsibility will reduce risk for a firm. There are two hypotheses created by Jo and Na (2012): the risk reduction hypothesis and the window-dressing hypothesis. Jo and Na conclude that corporate social responsibility in controversial firms can help reduce firm risk. However, my results do not show that.
Major Themes in Economics
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"Can Doing Good Reduce Risk? Corporate Social Responsibility and Risk for Firms in Controversial Industries,"
Major Themes in Economics, 22, 1-14.
Available at: https://scholarworks.uni.edu/mtie/vol22/iss1/3